The richest 10 percent of the Hungarian population spend seven times as much on transport fuel than the poorest 10 percent, and more than the poorest 40 percent of the population combined. Thus, with the price of fuel fixed well below the market price, those who do not need it receive the most subsidies from the state. The price freeze should therefore be abolished without delay, and excise duties on fuel should be increased to their previous levels, with the additional revenue being used to provide meaningful assistance to those in need.

In many countries around the world (e.g., Ireland, Japan, Poland, and Serbia), attempts are being made to combat high energy prices by putting a cap on prices and providing subsidies to energy companies. This is also the method used by the Hungarian government. However, Central Statistical Office (KSH) data show that only 3% of total household spending on transport fuel is paid for by the poorest 10% of the population, compared to 22% by the richest 10%.

Zoltán Pogátsa, board member of the Clean Air Action Group, said: “What is happening now with fuel prices is what economists call perverse redistribution, because it increases social inequalities and tensions. Moreover, an OECD study and other analyses show that the greater the social inequalities, the worse the country’s economy performs. Instead of price freezes, we need to help those in need through targeted subsidies and the development of environmentally friendly modes of transport.”

András Lukács, President of Clean Air Action Group, added: “The fuel price freeze favours predominantly the very people who are most responsible for the degradation of our environment. This is illustrated by the fact that the richest 1% of the world's population emit twice as much carbon dioxide as the poorest 50%.”

A previous article on the subject by the Clean Air Action Group can be found here.